building a STRONGER foundation - Cemex
building a STRONGER foundation - Cemex
building a STRONGER foundation - Cemex
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Reconciliation of stockholders’ equity under MFRS to U.S. GAAP<br />
CEMEX, S.A.B. DE C.V. AND SUBSIDIARIES<br />
Notes to the Consolidated Financial Statements – (Continued)<br />
As of December 31, 2010, 2009 and 2008<br />
(Millions of Mexican pesos)<br />
As of December 31, 2010 and 2009, the main differences between MFRS and U.S. GAAP, and their effect on consolidated stockholders'<br />
equity, with an explanation of the adjustments, are presented below:<br />
2010 2009<br />
Total stockholders' equity reported under MFRS...................................................................... Ps 213,700 257,570<br />
U.S. GAAP adjustments:<br />
1. Goodwill (notes 24(b) and (j)) .................................................................................................. (27,193) (27,760)<br />
2. Other intangible assets (note 24(j)) ........................................................................................... (179) (179)<br />
3. Income taxes (note 24(c)).......................................................................................................... 2,393 2,678<br />
4. Accounting for uncertainty in income taxes (note 24(d)).......................................................... (7,246) (13,265)<br />
5. Employee benefits (note 24(e))................................................................................................. (6,586) (6,141)<br />
6. Non-controlling interest – Financing transactions (note 24(f)) ................................................. (16,310) (39,859)<br />
7. Inflation adjustment for machinery and equipment (note 24(g))............................................... 3,532 3,839<br />
8. Financial instruments – Fair value measurements (note 24(h))................................................. 206 247<br />
9. Financial instruments - Mandatorily convertible securities (note 24(h))................................... (2,036) (2,036)<br />
10. Financial instruments - Optional convertible subordinated notes (note 24(h)) ......................... (1,258) –<br />
11. Other adjustments – Deferred charges (note 24(k)) .................................................................. (4,208) (5,769)<br />
12. Other adjustments – Capitalized interest (note 24(k))............................................................... 56 79<br />
Approximate U.S. GAAP adjustments...................................................................................... (58,829) (88,166)<br />
Total stockholders' equity under U.S. GAAP (note 24(f)) ........................................................ Ps 154,871 169,404<br />
The following table presents summarized consolidated financial information of balance sheets as of December 31, 2010 and 2009, prepared<br />
under U.S. GAAP, including all reconciling items and reclassifications as compared to MFRS described in this note 24:<br />
At December 31, 2010 At December 31, 2009<br />
MFRS Change U.S. GAAP MFRS Change U.S. GAAP<br />
Current assets 1, 2............................................................................Ps 54,567 7,182 61,749 56,770 5,615 62,385<br />
Investments in associates, other investments and non-current<br />
accounts receivable...................................................................... 23,175 2,542 25,717 32,144 2,600 34,744<br />
Property, machinery and equipment 3, 4.......................................... 231,458 8,812 240,270 258,863 9,687 268,550<br />
Goodwill, intangible assets and deferred charges, net .................... 205,897 (29,568) 176,329 234,509 (41,647) 192,862<br />
Total assets ..................................................................................... 515,097 (11,032) 504,065 582,286 (23,745) 558,541<br />
Current liabilities 1, 2................................................................................ 55,119 4,428 59,547 49,213 1,549 50,762<br />
Long-term debt ............................................................................... 197,181 (113) 197,068 203,751 (149) 203,602<br />
Other non-current liabilities............................................................ 49,097 27,172 76,269 71,752 23,162 94,914<br />
Perpetual debentures....................................................................... – 16,310 16,310 – 39,859 39,859<br />
Total liabilities................................................................................ 301,397 47,797 349,194 324,716 64,421 389,137<br />
Controlling interest......................................................................... 194,176 (42,639) 151,537 213,873 (48,334) 165,539<br />
Non-controlling interest.................................................................. 19,524 (16,190) 3,334 43,697 (39,832) 3,865<br />
Consolidated stockholders' equity .................................................. 213,700 (58,829) 154,871 257,570 (88,166) 169,404<br />
Total liabilities and stockholders' equity.........................................Ps 515,097 (11,032) 504,065 582,286 (23,745) 558,541<br />
Additional reclassifications under U.S. GAAP<br />
The summarized consolidated financial information under U.S. GAAP presented in the table above includes several reclassifications as compared<br />
to the summarized consolidated financial information under MFRS. The main reclassifications at December 31, 2010 and 2009 are as follows:<br />
1 In connection with deferred income taxes, as of December 31, 2010 and 2009, current assets under U.S. GAAP include assets of Ps4,496 and Ps6,499,<br />
respectively, which are considered non-current items under MFRS. Likewise, current liabilities under U.S. GAAP include liabilities of Ps4,150 in 2010 and<br />
Ps1,680 in 2009 classified as non-current items under MFRS.<br />
2 Includes the reversal of receivables sold under MFRS that do not qualify for derecognition under U.S. GAAP for approximately Ps3,617 in 2010<br />
(note 24(n)).<br />
3 Assets classified as held for sale under MFRS (note 8) for approximately Ps965 and Ps1,255, as of December 31, 2010 and 2009, respectively, were<br />
reclassified to long-term assets in the condensed financial balance sheet information under U.S. GAAP. These assets are stated at their estimated fair value.<br />
Estimated costs to sell these assets are not significant.<br />
4 At December 31, 2010 and 2009, extraction rights in the aggregates sector, net of accumulated amortization, of approximately Ps5,953 (US$482) and<br />
Ps6,302 (US$481), respectively (note 11), recognized as intangible assets under MFRS, were reclassified as part of the book value of the quarries in<br />
property, machinery and equipment under U.S. GAAP, in accordance with ASC 805-20-55-37, Whether Mineral Rights are Tangible or Intangible Assets.<br />
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